Lithia Expands Presence in Southwest Region, Boosts Share Repurchase

Core Viewpoint - Lithia Motors, Inc. is actively expanding its market presence through strategic acquisitions, enhancing its revenue and market share in the automotive sector [1][3]. Acquisition Details - Lithia Motors acquired Elk Grove Subaru in Elk Grove, CA, to strengthen its footprint in the Sacramento area and the Southwest region [1]. - The acquisition is projected to generate $100 million in annual revenues, increasing Lithia's total year-to-date acquired annualized revenues to$180 million [2]. - In 2023, Lithia acquired $3.8 billion in annualized revenues, and in 2024, it further acquired over$5.9 billion in annualized revenues through multiple dealership acquisitions [3]. Financial Strategy - Lithia's board approved a $350 million increase to its share repurchase authorization, raising the total available for future buybacks to approximately$748 million [4]. - As of March 4, 2025, Lithia has repurchased over $71 million worth of shares, representing 0.75$361 per share [4]. Market Position - Lithia currently holds a Zacks Rank of 3 (Hold), indicating a stable position in the market [5]. - Comparatively, other auto stocks like Geely Automobile Holdings Limited, Dana Incorporated, and Strattec Security Corporation are rated higher with a Zacks Rank of 1 (Strong Buy) [5]. Growth Estimates - The Zacks Consensus Estimate for Geely's fiscal 2025 indicates significant year-over-year growth of 66.62% in sales and 149.31% in earnings [6]. - Dana's 2025 earnings are expected to grow by 70.21% year-over-year, with improved EPS estimates for the next two fiscal years [6]. - Strattec's 2025 sales are projected to grow by 2.61%, with positive revisions in EPS estimates for the upcoming years [7].